Citigroup, Deutsche Bank and UBS will be acting as joint bookrunners and lead managers for the bond offering and will talk to investors in Dubai and Boston on Monday, February 5 and London and New York the next day.
Although, the specific amount hasnÆt been decided yet, sources say it is likely to be between $1 billion and $2 billion, for a bond with a maturity of 15-years or 30-year or a combination of both.
Indonesia last sold international bonds in March 2006, with a $2 billion, dual-tranche issue of 2017 securities. The country has about $78 billion of outstanding bonds, with $28 billion maturing this year, according to Bloomberg data.
But it needs more money to build new roads, ports and improve telecommunications, a top priority for the government of Susilo Bambang Yudhoyono who swept into office in 2004 when he won the presidential election with a record-breaking 60.9% of the popular vote after he promised to improve infrastructure throughout the nation. In November, the government earmarked 10 so-called ômodelö infrastructure projects valued at $4.4 billion that it wants to lure foreign investors to put money into directly. In addition, however, it has some 101 other projects, valued at about $14.7 billion, that it wants to kick off soon.
Fitch Ratings upped its outlook on IndonesiaÆs foreign-currency debt to ôpositiveö from ôstableö last week stating that the government has improved finances. Fitch rates Indonesia BB-, three levels below investment grade. The country is rated BB-minus by Standard & Poor's, while MoodyÆs Investors Service puts the country one level lower at B1.
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